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UK Chancellor Unveils £16 Billion Annual Welfare Boost

11/27/2025

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Summary

Story summary

UK Chancellor Rachel Reeves plans to raise welfare spending by £16 billion annually by 2030, per the Office for Budget Responsibility (OBR).
The rise would consume more than half of the £26 billion in tax increases announced recently.
Total welfare costs are projected at £406.2 billion, up £73.2 billion from this year.
The plan includes £9 billion to reverse welfare reforms and £3.1 billion for pension and working-age benefit adjustments.

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Story summary

UK Chancellor Rachel Reeves plans to raise welfare spending by £16 billion annually by 2030, per the Office for Budget Responsibility (OBR).
The rise would consume more than half of the £26 billion in tax increases announced recently.
Total welfare costs are projected at £406.2 billion, up £73.2 billion from this year.
The plan includes £9 billion to reverse welfare reforms and £3.1 billion for pension and working-age benefit adjustments.